SCENARIO 19-6
A student wanted to find out the optimal strategy to study for a Business Statistics exam. He
constructed the following payoff table based on the mean amount of time he needed to study every
week for the course and the degree of difficulty of the exam. From the information that he gathered
from students who had taken the course, he concluded that there was a 40% probability that the exam
would be easy. $$\begin{array} { | l | l | l | l | }
\hline & 16 \text { hours } & 8 \text { hours } & 4 \text { hours } \
\hline \text { Easy Exam } & 40 & 60 & 80 \
\hline \text { Difficult Exam } & 100 & 50 & 0 \
\hline
\end{array}$$
-Referring to Scenario 19-6, the optimal strategy using the maximax criterion is to
study 8 hours per week on average for the exam.

Question

SCENARIO 19-6
A student wanted to find out the optimal strategy to study for a Business Statistics exam. He
constructed the following payoff table based on the mean amount of time he needed to study every
week for the course and the degree of difficulty of the exam. From the information that he gathered
from students who had taken the course, he concluded that there was a 40% probability that the exam
would be easy. $$\begin{array} { | l | l | l | l | } 
\hline & 16 \text { hours } & 8 \text { hours } & 4 \text { hours } \
\hline \text { Easy Exam } & 40 & 60 & 80 \
\hline \text { Difficult Exam } & 100 & 50 & 0 \
\hline
\end{array}$$
-Referring to Scenario 19-6, the optimal strategy using the maximax criterion is to
study 8 hours per week on average for the exam.

Quizplus · Accepted Answer

The maximax criterion involves choosing the strategy with the maximum possible payoff. For 8 hours, the maximum payoff is 60, while for 16 hours it is 100, and for 4 hours it is 80. Therefore, the optimal strategy using the maximax criterion is to study 16 hours per week.

SCENARIO 19-6 a Student Wanted to Find Out the Optimal

SCENARIO 19-6
a Student Wanted to Find Out the Optimal